California Emerging Technology Fund Annual Report 2012–2013 Table of Contents (Hold down the Ctrl key as you click on a Table of Contents entry to jump directly to that page.) Close the Digital Divide: A Call to Action for Vision and Leadership ..................... 6 Statement from Michael R. Peevey, Chairman, California Emerging Technology Fund; President, California Public Utilities Commission ................ 6 Broadband Empowers People and Transforms Lives ........................................... 7 Statement from Lawrence E. Strickling, Assistant Secretary for Communications and Information Administrator, National Telecommunications and Information Administration .......................................................................... 7 Get Connected! ..................................................................................................... 8 Closing the Digital Divide Is Imperative for California ........................................ 8 New Public Policy and Additional Resources Are Needed ................................ 9 Significant Progress Has Been Made with Focused Leadership ....................... 9 Empower People and Transform Lives ............................................................... 10 California Earns Top Grades ........................................................................... 10 Trend Line for California and U.S. Broadband Adoption ................................. 11 Goals for Success: 98% Deployment and 80% Adoption ................................... 11 Supply – Deployment ...................................................................................... 11 Demand – Adoption......................................................................................... 12 California a Global Leader in Deployment and Adoption ................................. 12 Outline of 5 Overarching Strategies to Close the Digital Divide ...................... 12 1. Civic Leader Engagement .................................................................... 13 2. Venture Philanthropy Grantmaking ...................................................... 13 3. Public Policy Initiatives ......................................................................... 13 1 4. Public Awareness and Education ......................................................... 14 5. Strategic Partnerships .......................................................................... 14 5 Overarching Strategies to Close the Digital Divide: Achieve 98% Deployment and 80% Adoption............................................................................................... 15 1. Civic Leader Engagement ........................................................................... 15 2. Venture Philanthropy Grantmaking ............................................................. 16 Sidebar Quote from Carol Whiteside, Partner, California Strategies, LLC ........................................................... 17 3. Public Policy Initiatives ................................................................................ 17 Digital Literacy.......................................................................................... 17 School2Home........................................................................................... 18 Telehealth –Telemedicine ........................................................................ 20 Smart Housing ......................................................................................... 21 Smart Communities .................................................................................. 22 4. Public Awareness and Education: Get Connected! ..................................... 23 5. Strategic Partnerships ................................................................................. 24 Global Broadband Penetration as of December 2011 Measured by Subscribers per 100 Inhabitants and GDP per Capita (USD PPP, 2011) 24 Sidebar Quote from Dr. Barbara O’Connor, CETF Secretary................... 24 California Advanced Services Fund Is Key Resource for Deployment ................ 25 Progress Continues on Broadband Adoption ...................................................... 26 California Broadband Adoption Percentage by Population Served .......... 27 California Broadband Adoption Percentage by Region ............................ 27 Sidebar Quote from Ken McNeely, President, AT&T California ............... 27 Sidebar Quote from Tim McCallion, West Region President, Verizon ...... 27 Partners Contribute to Progress.......................................................................... 28 2 California Emerging Technology Fund Summary of Grant Investments .......... 28 Acknowledgements .................................................................................. 32 Grantees Meet and Exceed Performance Goals ................................................ 32 Performance Charts ............................................................................................ 33 ACT and BAA – NTIA Grant: Total Media Impressions ................................... 33 California Emerging Technology Fund Grants: 2008 Progress Through December 2012 ............................................................................................... 33 CETF Investments Attract ARRA NTIA Grants ................................................... 34 Broadband Awareness and Adoption .............................................................. 34 Broadband Adoption and Awareness Project Summary of Grant Investments .............................................................................................. 35 BAA – NTIA Grant: Apr. 2010 Progress Through Dec. 2012 ................... 35 Access to Careers in Technology .................................................................... 35 Access to Careers in Technology Project Summary of Grant Investments .................................................................................... 36 ACT – NTIA Grant: Oct. 2010 Progress Through Dec. 2012.................... 37 Spotlight on Grantee Partners: Broadband Empowers People and Transforms Lives ................................................................................................ 37 City of Firebaugh: Reaching the Unconnected in Rural California .................. 37 Latino Community Foundation: Finding Work for the Underemployed ............ 38 Mission Economic Development Agency: Helping Latinas Pursue Dreams .... 38 The ACME Network: Preparing Youth for Digital Careers ............................... 39 Chicana/Latina Foundation: Helping New Immigrants Thrive .......................... 39 Radio Bilingüe: Bringing Families Closer Together ......................................... 40 San Diego Futures Foundation: Connecting Urban Residents to Jobs ........... 40 YMCA Youth Institute: Providing a Path for Promising Students..................... 41 Lessons Learned from Grantmaking ................................................................... 41 3 Lessons Learned by CETF in Grantmaking .................................................... 42 Lessons Learned by Grantee Partners in Achieving Adoptions ...................... 43 Focus and Accountability Drive Results .............................................................. 43 Augmenting Broadband and Digital Literacy Curriculum ................................. 44 Driving Sustainable Broadband Subscriptions ................................................ 44 Linking Broadband Adoption to Job Placements ............................................. 45 Providing Access to Affordable Computer Hardware ...................................... 45 Pursuing Sustainability .................................................................................... 45 Don and Rosemary Vial Awards for Digital Inclusion .......................................... 46 2012 Awardees ............................................................................................... 47 Sidebar: Nominee representatives for Outstanding Performance by an Organization as they appear from left to right in a photograph................. 47 2012 Vial Awards Panel of Judges (not pictured)..................................... 47 Spotlight on Regional Consortia ......................................................................... 48 Mapped View of Aggregated Broadband Demand Regional Projects ............ 50 Spotlight on School2Home Partners: School2Home Transforms Education ....... 52 Los Angeles Unified School District................................................................. 52 Sidebar Quote from Jay McPhail, Director of Instructional Technology, Riverside Unified School District .............................................................. 52 Riverside Unified School District ..................................................................... 52 Oakland Unified School District ....................................................................... 53 School2Home Is Supported by Educators and Families ..................................... 53 What Students Say.......................................................................................... 53 What Parents Say ........................................................................................... 54 What Teachers Say ......................................................................................... 54 What Principals Say ........................................................................................ 55 4 School2Home Promotes Academic Improvement ........................................... 55 Leadership is Key to Progress: California Legislature Leaders Support Broadband Deployment and Adoption ................................................................ 56 Quote From The Honorable Alex Padilla, 20th District Chairman, Senate Energy, Utilities and Communications Committee ................................... 56 Quote From The Honorable Jean Fuller, 18th District Vice Chairman, Senate Energy, Utilities and Communications Committee ....................... 57 Quote From The Honorable Steven Bradford, 62nd District Chairman, Assembly Utilities and Commerce Committee ......................................... 57 Quote From The Honorable Jim Patterson, 23rd District Vice Chairman, Assembly Utilities and Commerce Committee ......................................... 57 Quote From Carlos Ramos Secretary of California Technology............... 58 Quote From Kish Rajan Director of the Governor’s Office of Business and Economic Development ........................................................................... 58 California Public Utilities Commission ................................................................. 59 California Broadband Council ............................................................................. 59 CETF Leverages Seed Capital: Summary of Financial Status ............................ 61 Summary of Financial Status Through Fiscal Year 2011-2012 (Cumulative to June 30, 2012) ................................................................. 61 Sidebar Quote from Rich Motta, CETF Treasurer .................................... 62 California Emerging Technology Fund Board of Directors ................................. 62 California Emerging Technology Fund Board of Expert Advisors ...................... 64 Opening Quote from Rachelle Chong ...................................................... 64 Closing Quote from Rachelle Chong ........................................................ 68 California Emerging Technology Fund Staff ....................................................... 69 Close the Digital Divide: Empower People and Transform Lives ........................ 70 Statement from Sunne Wright McPeak, President and CEO, California Emerging Technology Fund ............................................................ 70 CETF Contact Information .................................................................................. 71 5 California Emerging Technology Fund Annual Report 2011–2012 Close the Digital Divide: A Call to Action for Vision and Leadership Statement from Michael R. Peevey, Chairman, California Emerging Technology Fund; President, California Public Utilities Commission The California Public Utilities Commission (CPUC) was visionary and pioneering in founding the California Emerging Technology Fund (CETF). This action established the institutional foundation and provided the critical mass of resources to strategically and systematically focus leadership and forge publicprivate partnerships to close the Digital Divide in California. When the CPUC first envisioned an organization such as CETF evolving from the mergers of SBCAT&T and Verizon-MCI, our state was far behind others in promoting broadband deployment and adoption. Today, California has pulled ahead of the national average for broadband adoption and is ranked among the top states in addressing the challenges of the Digital Divide. This progress has been made because we have the benefit of CETF as a catalyst and as a partner with the State of California Administration and Legislature. This is a unique partnership between government and a statewide non-profit organization that is missiondriven, outcomes-focused, and publicly-accountable for results. Yet, while we are pleased with the progress that has been made and are deeply committed to achieving our goal of ensuring broadband connectivity for all Californians, we also have concluded that success will depend upon more aggressive public policies and additional resources. 6 Success in closing the Digital Divide in California will require the State Administration and the Legislature to integrate broadband and information technology into all solutions to address major issues—education, workforce preparation, health care, and housing. It also will require legislation to amend and extend the California Advanced Services Fund to achieve ubiquitous broadband deployment into remote rural communities and to upgrade access in poor disadvantaged neighborhoods. Breakthrough public policies are needed and the California Broadband Council will be recommending immediate action for the Administration and Legislature. Just as important, it will be critical for the federal government to work in collaboration with our California initiatives to optimize impact. We are grateful for the leadership of the California Congressional Delegation in supporting and promoting our efforts. And, we look forward to working in partnership with the Federal Communications Commission to implement the National Broadband Plan. We call upon all public officials and civic leaders to join us in the quest to close the Digital Divide and leave no Californian behind or offline. Broadband Empowers People and Transforms Lives Statement from Lawrence E. Strickling, Assistant Secretary for Communications and Information Administrator, National Telecommunications and Information Administration Excerpt from 2013 Broadband Summit of the Federal–State Joint Conference on Advanced Services, February 7, 2013, Federal Communications Commission Washington, D.C. “For those stuck on the wrong side of the Digital Divide, not having this basic digital literacy can be a significant barrier to employment. Many job listings are only posted online these days and many employers only accept job applications online. 7 Sheryl Culbert, a 49-year-old mother of two in Los Angeles, knows this first hand. After being released from prison in 2010, Culbert was determined to turn her life around. That meant finding a job. So she made her way to Chrysalis, a Los Angeles non-profit that helps the city’s homeless and low-income residents find work and get on a path to self-sufficiency. Chrysalis enrolled Culbert in a Recovery Act-funded digital literacy program that taught her how to go online and set up an email account. For Culbert, who had lacked the confidence to use a computer, it was a major step. Chrysalis also helped her land a job with the Skid Row Housing Trust, an organization that operates housing for the homeless in Los Angeles. Today, Culbert manages her own building for the Housing Trust. Her new job requires her to use a computer practically every day—to update rents in the system database, to email county housing officials, to make flyers for residents. She credits the training she received at Chrysalis for her success. Chrysalis is one of 19 programs across California that received part of the $14 million Recovery Act investment in the California Emerging Technology Fund, a non-profit organization seeking to close the state’s Digital Divide. Through all of its programs, CETF has helped over 2,600 people find jobs.” Get Connected! Closing the Digital Divide Is Imperative for California Imagine if you were not able to communicate instantaneously with others using your smart phone, digital tablet, or computer. That is the case for more than 9 million Californians who live in remote rural communities, on tribal lands, in lowincome neighborhoods, or who have a disability. Those of us who have the benefit of high-speed connections to the Internet—referred to as “broadband”— have come to depend on this connectivity for our work, staying in touch with family and friends, and making our daily lives easier. 8 Broadband is essential 21st Century infrastructure for economic prosperity and quality of life. It is a key factor in attracting capital investment to generate jobs. Communities without broadband access to the Internet are in danger of being left behind in the Digital Age— remote rural communities, poor urban neighborhoods, and people with disabilities are even more disadvantaged without broadband— an added challenge for California to retain global competitiveness. Closing the Digital Divide with ubiquitous broadband deployment and public policies to increase broadband adoption is imperative to the future of the Golden State. New Public Policy and Additional Resources Are Needed Significant Progress Has Been Made with Focused Leadership The California Emerging Technology Fund (CETF) was established by the California Public Utilities Commission (CPUC) with the mission to close the Digital Divide in California. CETF has been a vital catalyst for focus, action and results that has produced significant progress in the last 5 years. In 2008, California’s statewide adoption rate for broadband use at home was 55%—the same as the national average. Today, at 73% adoption statewide, California is 7 percentage points ahead of the nation (at 66%) with impressive gains among priority populations: Low-income households up 27 percentage points (from 33% in 2008 to 60% in 2012). Latino households up 24 percentage points (from 34% in 2008 to 58% in 2012), with a significant 11 percentage point increase for Spanish-speaking residents in the last year (from 35% in 2011 to 46% in 2012). People with disabilities up 20 percentage points (from 36% in 2008 to 56% in 2012). 9 California is now rated among the best-performing states by independent, credible sources. This progress has been made because of committed leadership: Governor and State Agencies, Legislature, California Congressional Delegation, CPUC, CETF, regional civic leaders, and a network of community partners have joined forces to close the Digital Divide. However, although much has been accomplished, a lot of work remains to reach the adopted goals for broadband deployment and adoption. Based on the experience to date, CETF concludes that success will require more effective Federal and State public policies coupled with the dedication of additional resources. Empower People and Transform Lives California Earns Top Grades As a result of purposeful leadership and focused work, California has emerged among the best-ranked states earning top grades—a much different picture from 5 years ago. Government Technology Magazine 2012 Digital States Survey by the Center for Digital Government gave California an A- grade (behind Michigan and Utah). TechNet ranked California among the top 5 states (behind Washington, Massachusetts, Delaware, and Maryland) in the 2012 State Broadband Index which analyzes how states look to high-speed connectivity to grow strong economies and vibrant communities. That report was prepared by John B. Horrigan, Ph.D., TechNet Senior Fellow, and Ellen Satterwhite, TechNet Innovation Fellow. TechNet also published in 2012 a study by Dr. Horrigan, now Vice President and Director, Media and Technology Institute, Joint Center for Political and Economic Studies, setting forth conclusions and recommendations about implementation of the National Broadband Plan that align with the CETF approach and strategies to effectively close the Digital Divide and the CETF “call to action” for new public policies and additional resources. 10 Trend Line for California and U.S. Broadband Adoption 2008 2009 2010 2011 2012 55% California adoption 62% California adoption 70% California adoption 72% California adoption 73% California adoption 55% U.S. adoption 63% U.S. adoption 66% U.S. adoption 61% U.S. adoption 66% U.S. adoption Note: The data source for the table above is PPIC–CETF– ZeroDivide Annual Survey August 2012 for the California adoption percentages and PEW Internet and American Life May 2012 for the U.S. adoption percentages. Goals for Success: 98% Deployment and 80% Adoption The mission of the California Emerging Technology Fund (CETF) is to provide leadership statewide to close the Digital Divide by accelerating the deployment and adoption of broadband and other advanced communications services to underserved communities and populations. CETF also is dedicated to making California a global leader in the deployment and adoption of broadband, which includes both wireline and wireless technologies. CETF is performance-driven and outcomes-focused. The CETF Strategic Action Plan is based on research and fact finding about “what works” and sets forth the overall approach and strategies to close the Digital Divide, including the metrics for accountability that provide the disciplined focus on results. CETF has identified 3 priority consumer communities for grantmaking: Rural and Remote Areas; Urban Disadvantaged Neighborhoods; and People with Disabilities. CETF has adopted the following goals and has projected a target date for achieving success by 2017—10 years after CETF began operations. Supply – Deployment Access for At Least 98% of Households Robust Rural-Urban California Telehealth Network (CTN) 11 All Tribal Lands Connected and Part of CTN Demand – Adoption Overall Statewide Adoption At Least 80% by 2015 and 90% by 2020 All Regions and Socioeconomic Groups within 10 Percentage Points of Overall Adoption (At Least 70%) Increased Overall Accessibility and Universal Design California a Global Leader in Deployment and Adoption Appropriate and Sufficient Speeds for Consumer Applications that Drive Adoption Increased Economic Productivity Reduced Environmental Impacts 5 Overarching Strategies to Close the Digital Divide To achieve the optimal impact and a higher return on investment of the original $60 million seed capital, CETF uses 5 overarching strategies: Civic Leader Engagement Venture Philanthropy Grantmaking Public Policy Initiatives Public Awareness and Education Strategic Partnerships These strategies are inter-related and mutually reinforcing as outlined below: 12 1. Civic Leader Engagement Engage and mobilize a “critical mass” of regional and local leaders to sustain a focus on closing the Digital Divide and to integrate Digital Inclusion into key strategies to promote the regional economies and address local challenges. Rural Regional Aggregation Demand Projects Urban Regional Roundtables 13 Regional Consortia with Funding from California Advanced Services Fund 2. Venture Philanthropy Grantmaking Establish and support a network of “trusted messengers” and “honest brokers” to reach priority consumer groups in target communities. $24.5M in Grants to More Than 70 Community-Based Organizations (CBOs) and Public Agencies – Leveraged $95M in Matching Funds CETF 1.0: $21.9M to 57 CBOs CETF 2.0: $2.6M to Match $14.3 in 2 ARRA NTIA Grants for 19 CBOs and Their Partners CETF 3.0: $5M Get Connected! Fund to Increase Broadband Adoption Capacity Building and Learning Communities Accountability for Performance and Results: Meeting and Exceeding Outcome Goals 3. Public Policy Initiatives Provide a positive public policy environment to optimize the impact of grants and to accelerate broadband adoption. Digital Literacy: Executive Order and Action Plan; Workforce Training Policy; iCALIFORNIA 13 School2Home: Technology and Parent Engagement Integrated into Teaching and Learning for Low-Performing Middle Schools as Centerpiece for Neighborhood Transformation California Telehealth Network: Medically-Underserved Rural and Urban Communities Connected to Medical Centers for Access, Quality of Care and Cost Savings Smart Housing: State and Federal Policy to Connect All Publicly-Supported Housing Smart Communities: Smart Infrastructure Policy; Resource Guide for Local and Regional Government Leaders; Libraries as Digital Literacy Hubs; Broadband as a Green Strategy 4. Public Awareness and Education Increase overall awareness among priority consumer communities about the benefits of broadband as a foundation and support for all other strategic actions. Get Connected! Public Awareness and Education Program GetConnectedToday.com Website (Online Basic Digital Literacy in 4 Languages) Community Connect Fairs Get Connected! Resolutions Adopted by Counties and Cities Public Information Media Messages Based on Research Club Digital (Launched by impreMedia La Opinión) 5. Strategic Partnerships Forge collaboration and shared funding with governments, foundations and employers to joint venture investments on major initiatives to sustain focus and efforts to close the Digital Divide. 14 5 Overarching Strategies to Close the Digital Divide: Achieve 98% Deployment and 80% Adoption 1. Civic Leader Engagement Engagement of civic leaders in stakeholder organizations is the first and foremost strategy to leverage the $60 million seed capital. It is a powerful fulcrum to optimize impact in all other strategies to close the Digital Divide in a state as large and diverse as California. CETF initially convened civic leaders in rural counties and funded the formation of Rural Regional Consortia to implement Rural Regional Aggregation Demand Projects to identify needs, aggregate demand, and map assets to encourage broadband deployment (visit CETF website for Final Reports). CETF then convened civic leaders around Urban Regional Roundtables to identify opportunities and outline action plans to integrate broadband applications into initiatives to address local priority challenges, such as economic development, education, workforce training, health care and other public services (visit the CETF website for Summary Reports). CETF also provided modest matching seed funding for the subsequent formation of Urban Regional Consortia. The existing 13 Regional Consortia evolved from these CETF investments and are currently supported and funded by the California Advanced Services Fund (CASF) administered by the CPUC. The Regional Consortia are responsible for reaching out and engaging elected representatives, public officials, and leaders from counties, cities, business, labor, and the community to involve them as partners in developing and implementing regional action plans. In December 2011, CETF convened the first-ever statewide Civic Leaders Summit to address the challenges of the Digital Divide and to prepare for implementation of the next phase of CASF by the CPUC. CETF continues to facilitate networking and collaboration among the Regional Consortia to share information and coordinate activities. The Regional Consortia constitute a foundation of civic leadership that 15 will sustain a focus on closing the Digital Divide and promoting Digital Inclusion long into the future. (See pages xx–xx for a spotlight on the Regional Consortia.) 2. Venture Philanthropy Grantmaking CETF regards grants as “investments” for which there must be measureable returns and tangible results—referred to as “venture philanthropy” grantmaking. Grantees are selected because of their capacity to deliver outcomes and their credibility as “trusted messengers and honest brokers” for the priority consumer communities. In addition to meeting their performance requirements for specific deliverables and outcomes, grantees are engaged as partners in driving to the statewide goals for closing the Digital Divide. CETF also facilitates collaboration among grantees through “learning communities” to enhance their effectiveness and expand their capacity. Since 2007 CETF has committed almost $25 million in grants to more than 70 non-profit community-based organizations (CBOs) and public agencies (see a list of all grantee partners and their performance outcomes on pages xx–xx and visit the CETF website for Final Reports). CETF also received 2 American Recovery and Reinvestment Act (ARRA) grants from the U.S. Department of Commerce National Telecommunications and Information Administration (NTIA) in 2010 totaling $14.3 million to increase broadband adoption in California. The 2 grants supported the work of 19 CBOs. The NTIA ARRA funding builds upon the initial round of CETF grantmaking and the investment in development of the Get Connected! Public Awareness and Education Program, allowing the federal government to better leverage their funds for greater impact. The first round of grantmaking is referred to as “CETF 1.0” because it coalesced a critical mass of partner CBOs as a foundation for reaching a sufficient number of Californians to close the Digital Divide. Leveraging CETF funds with the ARRA NTIA grants is referred to as “CETF 2.0” because it builds on that foundation and takes collaboration to the next level of impact. The current round of grantmaking is referred to as “CETF 3.0” because it relies on the “lessons learned” from the 16 first two phases and focuses integrated efforts on increasing broadband adoptions in the poorest communities. It also is the last round of grantmaking using the original CETF seed capital and is intended to forge Strategic Partnerships that will promote neighborhood transformation as a platform for future investment. Sidebar Quote from Carol Whiteside, Partner, California Strategies, LLC “CETF with partners throughout the state has made major progress toward closing the Digital Divide, and it has been an important part of the California comeback!” 3. Public Policy Initiatives The pace at which the Digital Divide can be closed is significantly determined by the policy environment in which grantmaking and other strategies are employed. CETF has launched major policy initiatives to accelerate broadband adoption. The following summarizes each major policy initiative and the milestone accomplishments to date. In March 2011 CETF convened a Policymakers’ Roundtable in Sacramento which identified several policy and program opportunities to accelerate broadband deployment and adoption by integrating information technology into all strategies to address major challenges for California (visit the CETF website for summary report which was widely circulated to policymakers and formally submitted to the California Broadband Council as a base document for future work). Today, the California Broadband Council serves as the official forum for continued promotion and oversight of public policies to accelerate broadband deployment and adoption. Digital Literacy Digital Literacy is defined as using digital technologies, communications tools, and/or networks to access, manage, integrate, evaluate, create and communicate information in order to function in a knowledge society. CETF convened experts and stakeholders to reach agreement on recommendations for the State to adopt Digital Literacy as an official goal for California—thus helping 17 drive the demand for broadband adoption. In 2009 the Governor signed an Executive Order (a) establishing Digital Literacy as a goal for all students, workers, and residents and (b) directing the development of an action plan to coordinate the activities and integrate the resources of all state agencies to achieve the goal. Milestone accomplishments include: The California Technology Agency (CTA) prepared the action plan Digital Literacy Pathways in California in consultation with other State agencies and stakeholders and is leading the implementation activities. CETF funded the establishment of EmpowerNet California, a collaborative among several grantees to develop a Tool Kit to assist workforce preparation organizations in training “hard-to-employ” Californians for careers in information technology. EmpowerNet is working with the California Workforce Investment Board (CWIB), California Workforce Association, and local WIBs to incorporate Digital Literacy into all major workforce training programs. Leading WIBs have adopted resolutions of commitment to Digital Literacy: Contra Costa County Workforce Development Board, Sacramento Employment Training Agency, and NOVA in Silicon Valley. Policy is under development at other key WIBs in San Diego, Alameda County, and Richmond. CETF funded LINK Americas Foundation, Inc. to assist CTA to launch the iCALIFORNIA Digital Literacy Campaign and engage the State Librarian and employers as partners. School2Home School2Home is an innovative statewide program that is tackling two of California’s most critical and related challenges: closing both the Achievement Gap and the Digital Divide. It was developed in collaboration with The Children’s Partnership and reflects the consensus from a broad cross-section of education and industry leaders in the design of the 10 Core Components. School2Home is 18 a comprehensive framework for integrating the use of computing devices and broadband technologies into teaching and learning at low-performing middle schools, with an emphasis on school leadership, teacher professional development, parental involvement, student tech experts, and affordable home connectivity. It is rooted in sound research about “best practices” to improve academic performance, providing the foundation to blend traditional and online teaching methods that enable individualized learning. It also is a platform that supports the transition to common core standards and allows a focus on mastering core skills. By emphasizing the importance of learning both in the classroom and at home, School2Home fosters stronger communications between parents and teachers, which is a key to improving academic performance. School2Home in the words of one educator “is changing the paradigm of teaching and learning so that we are educating children for the 21st Century, rather than the 1950s.” And, data show that students who have computer and online navigation skills are twice as likely to attend college as those who are not connected. Milestone accomplishments include: School2Home was launched in 2009 and beta tested in 2 schools. Today School2Home is being implemented in 7 schools reaching more than 180 teachers and 5,000 students and their parents: Stevenson Middle School in Los Angeles Unified School District (LAUSD) in collaboration with the Partnership for Los Angeles Schools; Central and Chemawa Middle Schools in Riverside Unified School District; San Fernando Institute for Applied Media (SFIAM) in LAUSD in collaboration with Youth Policy Institute; Frick Middle School and Melrose Leadership Academy in Oakland Unified School District; and Muir Middle School in LAUSD in collaboration with LA’s Promise. Independent evaluation of School2Home has been conducted showing great promise for School2Home to be a scaled strategy for cost-effectively improving education statewide. Students at Stevenson Middle School and 19 SFIAM have shown gains in the Academic Performance Index (API) that outpace the average increase within LAUSD. Agreements have been signed to expand School2Home into 10 pivotal school districts statewide pending matching funding. Superintendent of Public Instruction Tom Torlakson has endorsed School2Home encouraging funders to invest in the program. (See pages xx–xx for a spotlight on School2Home partners.) Telehealth –Telemedicine Telehealth-Telemedicine is the ability to promote healthy behavior and provide medical care remotely using broadband connectivity between facilities, thus expanding access to vital services and improving the quality of care by linking critical expertise to medically-underserved communities. It also has the potential to help control costs. CETF was a key partner working with the University of California (UC) and a consortium of State agencies, providers, and funders to found the California Telehealth Network (CTN) with a robust vision of a statewide system “at scale” and is providing $3.6 million to match a grant of $22.1 million from the FCC to build the network by connecting more than 800 sites, including 300 Indian Health Services sites. CETF contributed pro bono administrative and management support services to CTN for the first year of operation as an independent non-profit in order to ensure success and stability in standing up a new organization. CETF also funded: UC Merced to recruit and connect initial telemedicine sites in the San Joaquin Valley (with the California Partnership for the San Joaquin Valley and AT&T); and the California Dental Association and Palo Alto Institute for Research and Education (in partnership with the Department of Veterans Affairs) to coordinate services and resources with CTN. Most recently, the FCC established a permanent program for telehealthtelemedicine which not only may provide future funding on a matched funding basis, but also confirms the wisdom of California establishing the California Telehealth Network. 20 Milestone accomplishments include: CTN became operational as an independent non-profit organization in 2011 as a unique public-private partnership to make telehealth-telemedicine a “signature component” of healthcare reform in California. CETF and UnitedHealth Group, Inc. have contributed initial seed capital for CTN operations, California HealthCare Foundation funded the development of a Business Plan, and Blue Shield of California Foundation awarded a grant to expand services. UC received an NTIA grant to support CTN operations and 15 Model eHealth Communities across the state. UnitedHealth is providing additional funding for the Model eHealth Communities to develop best practices for telehealthtelemedicine. CTN has been designated the California Regional Telehealth Resource Center (CTRC) and secured a $1.2 million grant from U.S. Department of Health and Human Services Health Resources and Services Administration (HRSA). Smart Housing Affordable Smart Housing is defined as a publicly-funded housing development project that possesses an independent “advanced communications network” to drive economies of scale that can result in a significantly-reduced cost basis for residents. An advanced communications network is in addition to the standard cables and infrastructure required for power, television and telephone. Feedback from residents underscores the ability of Smart Housing through broadband connectivity to transcend poverty and transform lives. As a result, the California Broadband Council is making Smart Housing a policy priority. Milestone accomplishments include: CETF formulated a model policy for Smart Housing, briefed state and local government policymakers, and conducted workshops with stakeholders. 21 CETF and the California Department of Housing and Community Development jointly requested that the U.S. Department of Housing and Urban Development amend federal policies and regulations to support and promote Smart Housing. CETF has compiled and analyzed data to produce the first comprehensive report on the options and costs for an advanced communications network so that policymakers and affordable housing builders have reliable information to pursue Smart Housing. CETF is partnering with the Non-Profit Housing Association (NPH) of Northern California and other affordable housing organizations to promote the adoption of Smart Housing Policies at the federal, state, and local levels of government. NPH and CETF also are preparing a Tool Kit to assist affordable homebuilders with information and resources about broadband connectivity. Smart Communities The concept of “Smart Communities” refers to a policy commitment and focused effort by local governments and civic leaders to optimize broadband deployment as a community grows or redevelops, incorporating it into major public buildings, transportation facilities, and other infrastructure projects. It also means optimizing the use of broadband and other information technologies to deliver public services and integrating it into solutions to major problems to increase efficiency and enhance effectiveness. CETF is working with the State Librarian and other library systems to promote libraries as “hubs for Digital Literacy” and wireless “hot spots” throughout California. In addition, promoting the use of broadband is a “green strategy” to reduce impacts on the environment and reduce the carbon footprint. Milestone accomplishments include: CETF and Community Partners, California Community Technology Policy Group, and the Broadband Institute of California (Santa Clara University School of Law) published a summary and analysis of government-led wireless 22 projects titled “Wired for Wireless” which provides local governments and stakeholders with critical information and a checklist to guide consideration of wireless initiatives. CETF and the Center for the New Orange County compiled examples of existing local government policies regarding broadband and prepared a Resource Guide for Local and Regional Government Leaders titled “Getting Connected for Economic Prosperity and Quality of Life” which provides a sample policy and check list for local leaders. CETF and Valley Vision inventoried case studies of broadband deployment and adoption as “green strategies” and published a Policy Brief for policymakers and civic leaders. 4. Public Awareness and Education: Get Connected! CETF launched Get Connected! to raise overall awareness about the benefits of broadband as a foundation and support for all other strategic actions. The initial 2-year goal was to increase adoption among low-income and Latino households statewide by 10 percentage points—and there was a 16 percentage point increase. Get Connected! developed a website (GetConnectedToday.com) to help non-users learn the basics about computers and broadband in several languages, produced and aired public service announcements, and conducted numerous Community Connect Fairs in target neighborhoods. Counties, cities, and school districts throughout California adopted Get Connected! resolutions to promote awareness. In addition, to support the work funded by NTIA, La Opinión and parent company impreMedia launched “Club Digital” to reach a vast Spanish-speaking population with print and online lessons. Get Connected! provides a solid foundation of basic Digital Literacy information and a costefficient platform for CBOs and public agencies to reach new users to increase broadband adoption. 23 5. Strategic Partnerships In order to sufficiently leverage the CETF seed capital to close the Digital Divide by 2017, it is essential for CETF to forge Strategic Partnerships with government, foundations and employers to joint venture on major projects to expand initiatives such as the California Telehealth Network, School2Home, Smart Housing, and Get Connected! Given that CETF “front-loaded” grantmaking to engage as soon as possible a “critical mass” of CBO partners in target communities, only $10 million in original seed capital remains, of which half ($5 million) is dedicated to expanding School2Home statewide with a goal of CETF contributing 20% and other partners contributing 80%. The last $5 million has been dedicated to the CETF Get Connected! Fund (to be leveraged 5-fold) to increase broadband adoptions through Strategic Partnerships. This last phase of open, competitive grantmaking is referred to as “CETF 3.0” to take to scale “lessons learned” about “what works” for increasing broadband adoption. CETF is seeking Strategic Partnerships for integrated “breakthrough strategies” to close the Digital Divide that will concurrently improve California’s economic competitiveness and quality of life for all residents. Global Broadband Penetration as of December 2011 Measured by Subscribers per 100 Inhabitants and GDP per Capita (USD PPP, 2011) Netherlands Korea Germany Sweden U.S. Japan 39.1 subscribers per 100 inhabitants 35.4 subscribers per 100 inhabitants 33.3 subscribers per 100 inhabitants 32.5 subscribers per 100 inhabitants 27.7 subscribers per 100 inhabitants 27.4 subscribers per 100 inhabitants 42,847 GDP per capita 30,254 GDP per capita 41,348 GDP per capita 39,187 GDP per capita 46,588 GDP per capita 33,785 GDP per capita Note: The data source for the table above is Organization for Economic Cooperation and Development (OECD) – Dec. 2011 Sidebar Quote from Dr. Barbara O’Connor, CETF Secretary “CETF focuses on outcomes and gets results. Funders who become Strategic Partners realize a huge return on their investments—not the least of which is to empower people and transform lives.” 24 California Advanced Services Fund Is Key Resource for Deployment The goal for broadband deployment is to achieve access to 98% of all households by 2017. Based on mapping by the Governor’s Broadband Task Force in 2007 and more recent work by the CPUC, it is estimated conservatively that there was about 94% deployment when CETF began and that approximately 512,000 households (that existed and were unserved in 2007) in rural and remote communities will need to get high-speed Internet access to reach the 98% deployment goal. With authorization from the Legislature and Governor, the CPUC established the California Advanced Services Fund (CASF) to support broadband infrastructure deployment to unserved and underserved communities in rural and remote areas of the state. CASF was initially capitalized with $100 million which also provided an important source of matching funds for federal broadband grants available through the American Recovery and Reinvestment Act (ARRA). CASF was extended and expanded in 2010 with another $125 million through the enactment of legislation by Senator Alex Padilla, which designates $100 million for broadband infrastructure subsidies, $15 million for a revolving loan fund to help finance projects, and $10 million to support Regional Consortia to assist the CPUC reach the 98% deployment goal. To date, CASF and ARRA have provided funding for broadband access to approximately 287,000 households, leaving at least 225,000 households still to be reached with “last-mile” infrastructure. There also is a significant need for improved “middle-mile” broadband infrastructure that will support and enable “last-mile” projects. In addition, broadband to tribal lands for Native Americans that want to be connected must be a priority policy objective. Further, it should be recognized that broadband infrastructure in poorer urban neighborhoods is often inferior to the quality and speeds in surrounding communities. In particular, ensuring broadband connectivity to all publicly-subsidized multi-unit housing 25 complexes is a strategy that should be pursued aggressively to reach the most disadvantaged Californians. These facts present a compelling case for the Legislature and Governor to amend, extend and augment the California Advanced Service Fund as the key resource to achieve the 98% broadband deployment goal. Progress Continues on Broadband Adoption The goal for broadband adoption is to achieve 80% statewide of households using high-speed Internet access at home by 2015, with no demographic group or region below 70%. As shown on these graphs, significant progress has been made in narrowing the Digital Divide as evidenced by the changes between 2008 and 2012 in the statewide survey conducted by the Public Policy Institute of California (PPIC) that is co-sponsored by the California Emerging Technology Fund and ZeroDivide. Since 2008, statewide use of broadband at home has increased from 55%, which was the same as the national average, to 73%, now 7 percentage points ahead of the nation. Even more encouraging are increases among disadvantaged populations because of focused strategic actions: lowincome households ($40,000 or less annually) are up 27 percentage points (from 33% to 60%), Latino families are up 24 percentage points (from 34% to 58%), and people with disabilities are up 20 percentage points (from 36% to 56%). Yet, these populations still lag behind higher-income households ($80,000 or more annually) at 93%. And, while there also have been steady increases in adoption in every region, with Los Angeles having the lowest adoption rate in 2008 at 48% being now at 69%, Los Angeles, the Inland Empire at 71% and Central Valley at 71% lag behind the Bay Area at 78% and San Diego-Orange at 78%.Thus, a substantial challenge remains: approximately another 880,000 households will have to subscribe to broadband to achieve the 80% adoption goal. This target will be reached only by public officials enacting new public policies and dedicating additional resources. 26 California Broadband Adoption Percentage by Population Served Low-Income Households Latino Households People with Disabilities Rural Households California Overall 33% in 2008 34% in 2008 36% in 2008 51% in 2008 55% in 2008 40% in 2009 39% in 2009 47% in 2009 59% in 2009 62% in 2009 49% in 2010 50% in 2010 55% in 2010 69% in 2010 70% in 2010 58% in 2011 55% in 2011 49% in 2011 no data 2011 72% in 2011 60% in 2012 58% in 2012 56% in 2012 no data 2012 73% in 2012 68% in 2011 78% in 2011 70% in 2011 76% in 2011 66% in 2011 72% in 2011 69% in 2012 78% in 2012 71% in 2012 78% in 2012 71% in 2012 73% in 2012 California Broadband Adoption Percentage by Region Los Angeles Bay Area Central Valley Orange – San Diego Inland Empire California Overall 48% in 2008 65% in 2008 53% in 2008 58% in 2008 56% in 2008 55% in 2008 58% in 2009 73% in 2009 51% in 2009 70% in 2009 60% in 2009 62% in 2009 67% in 2010 79% in 2010 64% in 2010 75% in 2010 71% in 2010 70% in 2010 Sidebar Quote from Ken McNeely, President, AT&T California “Each time a Californian clicks on the Internet for the first time, a brick is laid in the bridge that spans a narrowing Digital Divide. Thanks to the tireless work of CETF, the pace of innovation and affordable Internet-accessible devices, more Californians than ever before are connecting to both their local and global communities.” Sidebar Quote from Tim McCallion, West Region President, Verizon “As a global technology leader, Verizon is bringing our transformational technology and innovation to solve society’s biggest challenges. Working with our community partners, Verizon has focused on using the power of its networks to increase 27 access to care, enhance education, and create a cleaner and more sustainable world. The California Emerging Technology Fund’s work to bridge the Digital Divide is a key part of Verizon’s vision of a connected and borderless world.” Partners Contribute to Progress The California Emerging Technology Fund (CETF) has awarded more than $25 million in grants to community-based organizations and public agencies who are regarded as “partners” in achieving the broadband deployment and adoption goals. CETF also received $14.3 million in 2 federal grants from the National Telecommunications and Information Administration (NTIA) to support 19 subawardees. The following is an alphabetical listing of all grantee partners along with the amount of the grant. Please visit the CETF website for additional information about each grantee, a grouping of grantees by impact focus summarizing the individual grantee deliverables and outcomes, and their Final Reports. California Emerging Technology Fund Summary of Grant Investments Grantee Partner Project Name Amount 21st Century Communities Casa Familiar, CD Tech, Los Angeles Housing Partnership, Inc., Mission Economic Development Corporation, New Economics for Women, Self-Help Enterprises 211-LA Alliance for Technology Access Amador-Tuolumne Community Resources, Inc. California Dental Association Foundation Special Projects $60,000 Get Connected! Hot Line Loan Program Feasibility $100,000 $10,000 Gold Country Connect $250,000 Teledentistry for CTN $25,000 28 California Resources and Training California Black Chamber of Commerce Foundation, California Hispanic Chamber of Commerce Foundation, Asian Business Center California State University (CSU) Foundation California State University East Bay California Telehealth Network California Telehealth Network Center for a New Orange County Center for Accessible Technology Centro Latino for Literacy Chico State University Foundation Chico State University Foundation City of Firebaugh* Community Christian College Community Development Technologies Center Community Foundation for Monterey County Community Partners, California Community Technology Policy Group, BroadBand Institute of California Computers for Youth Connected Nation Small Business Consortium for Emerging Markets $287,000 Accessible Technology Initiative $750,000 School2Home Peer Review California Telehealth Network (CTN) CTN Seed Capital Direct Payments Sample Broadband Policies for Local Governments Digital Inclusion Challenge $20,000 $3,355,837 $700,000 $300,000 $50,000 $455,000 Los Angeles Countywide Spanish Literacy Campaign Northeastern California Connect $250,000 Upstate California Connect $250,000 Firebaugh Community Technology Collaborative My Blueprint for Life $633,000 TechReady $750,000 Central Coast Tri-County Broadband Consortium Wireless Comparative Analysis and Education Project Take IT Home Project Technical Assistance for Rural Demand Aggregation 29 $300,000 $153,000 $5,000 $250,000 $666,000 $50,000 Contra Costs Economic Partnership Desert Mountain Resource Conservation and Development Council El Concilio of San Mateo County EmpowerNet California * Partners FirstMile.US Goodwill Industries of San Francisco, San Mateo and Marin Counties* Humboldt State Foundation iFoster Latino Community Foundation LINK Americas Foundation Little Tokyo Service Center Community Development Corporation Mission Language and Vocational School (MLVS)* Non-Profit Housing Association of Northern California Oakland Technology Exchange West Fiscal Agent – Marcus Foster Institute OCCUR* One Economy Corporation Palo Alto Institute for Research and Education Public Policy Institute of California San Bernardino Economic Development Agency East Bay Regional Broadband Strategy Project Eastern Sierra Connect $110,000 WiFi 101 $750,000 EmpowerNet California $250,000 Get Connected! ReCompute $10,000 $600,000 Redwood Coast Connect Get Connected! and Leadership Engagement Project Community Consortium for Emerging Markets California Digital Literacy Initiative Neighborhood Unplugged $250,000 $300,000 MLVS Technology Center $150,000 Smart Housing Policy $100,000 Digital Inclusion Oakland $300,000 East Bay Community Technology Catalyst Bring IT Home California VA Health Kiosks for CTN $600,000 Annual Statewide Survey: Californians and Information Technology Inland Empire Regional Consortium 30 $5,000 $25,000 $100,000 $250,000 $1,400,000 $25,000 $290,000 $5,000 San Diego Futures Foundation Sierra Economic Development Corporation Southeast Cities Development Corporation Stride Center* San Diego Broadband Initiative $450,000 Central Sierra Connect $250,000 Southeast Cities Technology Collaborative Launching Communities Across California Refurbished Computer Initiative Arts and Animation Project $486,000 The Children’s Partnership Fiscal Agent – Tides Center School2Home $415,000 $369,300 The Salvation Army University of California, Merced University of California Office of the President, UC Davis (UC) Valley Vision Get Connected! Pico Union San Joaquin Valley eHealth Regional Visioning Project California Telehealth Network (CTN) $100,000 $200,000 Sacramento Metro Broadband Collaborative Beyond My Space Get Families Connected $5,000 $140,000 $20,000 The A-Team $380,000 Youth Institute $869,500 Neighborhood Technology Learning Continuum $550,200 Tech Soup The ACME Network Venice Arts West Contra Costa Unified School District World Institute on Disability Alliance for Technology Access, Center for Accessible Technology and World Institute on Disability YMCA Greater Long Beach YMCA of Greater Long Beach, YMCA of Metropolitan Los Angeles, THINK Together, Anaheim Family YMCA, YMCA of the Central Bay Area, YMCA of Cambria YMCA Greater Long Beach 31 Development Implementation $620,000 $500,000 $680,000 $244,163 YMCA of the East Bay Building Blocks for Kids Youth Policy Institute Family Inclusion Project $520,000 Valley Family Technology Project $292,000 Acknowledgements In addition to these grantee partners, CETF has been assisted during the last year by the following contractors: SAESHE developed and placed public awareness advertising for the Get Connected! Public Awareness and Education Program and ACT; Valley Vision with the assistance of Applied Development Economics consultant Trish Kelly inventoried best practices for broadband as a “green strategy” and prepared a Policy Brief; Stride Center and EmpowerNet California promoted the integration of Digital Literacy into workforce preparation; California Community Builders worked on the feasibility of integrating telemedicine into “smart housing” in Firebaugh; Maile Communications documented the work and accomplishments of CETF grantees; Camicia & Company, LLC is helping provide information to policymakers; Glen Price Group facilitated the Learning Communities with NTIA grantees; Sustainable Systems, Inc. and Carl Anthony are assisting in advancing Digital Inclusion as a facet of integrated human services and socially-responsible investing to transform disadvantaged neighborhoods; and Families in Schools continues as a key partner in implementing School2Home. Grantees Meet and Exceed Performance Goals Grants awarded by CETF are subject to performance by grantee partners to achieve specific deliverables and outcomes set forth in Grant Agreements. CETF monitors progress through Quarterly Reports, Annual Reviews (on site), Annual Workshop, Learning Communities, and Final Reports. The approach used by CETF as an “investment partner” to engage, inform, monitor, assist, and correct course when needed has been a critical factor in getting to success. The Grantee 32 Performance Charts show progress to date for all grantees in broad categories of outcomes. Performance Charts ACT and BAA – NTIA Grant Total Media Impressions $1,000,000 NTIA and CETF Investments ACT Oct. 2010 through Goal Dec. 2012 69 million impressions BAA Apr. 2010 through Dec. 2012 Goal 80 million impressions Actual 107 million impressions (155%) Actual 225 million impressions (281%) California Emerging Technology Fund Grants 2008 Progress Through December 2012 CETF Grantee Performance is updated as grants are completed. See the CETF website for Final Reports on accomplishments and outcomes for individual grants. Household Adoption Goal Actual 42,853 outcomes 36,298 outcomes (85%) TOTAL PEOPLE TRAINED Goal Actual 82,957 outcomes 91,091 outcomes (110%) Youth* Trained Digital Literacy Goal Actual 38,315 outcomes 43,595 outcomes (114%) Adults* Trained Digital Literacy Goal Actual 32,783 outcomes 36,524 outcomes (111%) People* Trained for Workforce Goal Actual 4,659 outcomes 7,328 outcomes (146%) Small Businesses* Trained Goal Actual 7,200 outcomes 3,644 outcomes (51%) Computers Refurbished to Goal Actual Assist Affordability 26,233 outcomes 32,207 outcomes (123%) *Included in TOTAL TRAINED 33 CETF Investments Attract ARRA NTIA Grants Broadband Awareness and Adoption The Broadband Awareness and Adoption (BAA) project mobilized the expertise and resources of 8 partner organizations to reach communities most impacted by the Digital Divide: low-income families, limited English-speaking Latinos, rural residents and people with disabilities. BAA partners worked with schools, churches, health clinics, job-training programs and social service providers to develop model “service ecosystems” which included technical support, low-price computers and affordable broadband connections. BAA has been recognized nationally for the innovative combination of media, online applications and grassroots mobilization to make significant strides to accelerate Digital Literacy and broadband adoption among the target populations. BAA exceeded all grant goals for targeted outreach, training and household broadband adoption in two years. Key accomplishments as of December 2012 include: Increased awareness about benefits of broadband among 13,296,068 lowincome residents. Provided 719,255 Californians with basic Digital Literacy skills to use broadband technology. Achieved 198,743 new broadband subscriptions by low-income households and distributed 6,866 computers to low-income households (172% goal). Total BAA Budget NTIA Grant CETF Match Funds Partner Cash Match Partner In-Kind Match $9,360,672 $7,251,295 $979,476 $882,667 $247,234 34 Broadband Adoption and Awareness Project Summary of Grant Investments Grantee Partner 2-1-1 California / United Ways of California Access Now Center for Accessible Technology Chicana/Latina Foundation Dewey Square Group Latino Community Foundation Radio Bilingüe Social Interest Solutions Amount $1,810,000 $77,800 $593,955 $602,348 $1,360,000 $850,000 $900,000 $1,699,999 BAA – NTIA Grant Apr. 2010 Progress Through Dec. 2012 BAA Project is scheduled to conclude March 2013. Household Adoption Goal 133,000 outcomes TOTAL PEOPLE TRAINED Goal 678,000 outcomes Youth* Trained Digital Literacy Goal 45,000 outcomes Adults* Trained Digital Literacy Goal 633,000 outcomes Referrals (One-e-App, 2-1-1) Goal 175,000 outcomes *Included in TOTAL PEOPLE TRAINED Actual 198,743 outcomes (149%) Actual 719,255 outcomes (106%) Actual 46,530 outcomes (103%) Actual 672,725 outcomes (106%) Actual 282,655 outcomes (162%) Access to Careers in Technology The Access to Careers in Technology (ACT) project began in October 2010 and will be completed by June 2013. The project has established scalable workforce development programs based on successful models while expanding access to 35 broadband and 21st Century jobs in low-income communities throughout the state. Youth, adults, and small business owners are learning essential computer skills, getting connected with broadband, and using Information and Communications Technology (ICT) training to advance employment in a spectrum of major industries from engineering to entertainment. ACT provides individuals—ranging from the homeless to former drug addicts who have multiple barriers to employment—with the building blocks for a career, giving people access not just to a job, but to a field of work that is in high demand. Key accomplishments as of December 2012 include: Trained 19,687 low-income youth and adults and 9,413 small business owners and employees with Digital Literacy skills. Trained 4,071 low-income residents and secured 2,659 ICT career-path jobs for low-income residents (104% goal). Achieved 8,194 new subscriptions by low-income households and distributed 5,547 computers to low-income households (222% goal). Total ACT Budget NTIA Grant CETF Match Funds Partner Cash Match Partner In-Kind Match $11,081,130 $7,108,181 $1,572,320 $2,379,839 $20,790 Access to Careers in Technology Project Summary of Grant Investments Grantee Partner California Resources and Training Caminos Pathways Chrysalis EmpowerNet California Goodwill Industries of San Francisco, San Mateo, and Marin Counties Amount $770,000 $292,341 $335,306 $360,000 $476,000 36 Mission Economic Development Agency OCCUR San Diego Futures Foundation Southeast Community Development Corporation Stride Center The ACME Network Youth Radio $122,659 $150,000 $1,945,000 $389,953 $1,219,900 $1,150,000 $147,983 ACT – NTIA Grant Oct. 2010 Progress Through Dec. 2012 ACT Project is scheduled to conclude June 2013. Household Adoption Goal 9,237 outcomes TOTAL PEOPLE TRAINED Goal 36,295 outcomes Youth* Trained Digitial Literacy Goal 8,150 outcomes Adults* Trained Digitial Literacy Goal 10,815 outcomes People* Trained for Workforce Goal 3,005 outcomes Small Businesses* Trained Goal 15,000 outcomes *Included in TOTAL PEOPLE TRAINED Actual 8,194 outcomes (89%) Actual 29,671 outcomes (90%) Actual 9,336 outcomes (115%) Actual 10,351 outcomes (96%) Actual 4,071 outcomes (132%) Actual 9,413 outcomes (63%) Spotlight on Grantee Partners Broadband Empowers People and Transforms Lives City of Firebaugh: Reaching the Unconnected in Rural California Two years ago, Maria Franco was diagnosed with diabetes. At first disheartened at the news, she soon figured out she could be her own best health advocate. Living on the outskirts of Firebaugh in the Central Valley, however, she does not 37 have access to broadband at home. But through a grant from California Emerging Technology Fund to the city of Firebaugh, Maria and hundreds of local residents can go to town to get online and take digital literacy training through a partnership with Los Promotores, which promotes health and welfare initiatives. “I had never before in my life used the Internet,” Maria said. Now, through online searches she says she has been able to find and learn about holistic medicines to treat diabetes. “Broadband and computer literacy have opened up a world of information,” she said, and a new avenue for her eagerness to give back to her community. “I am now more involved in helping others,” she said. Latino Community Foundation: Finding Work for the Underemployed Alicia Lopez had never heard of Craigslist when she arrived for computer training at Canal Alliance in Marin. A struggling single mom, she urgently needed to find more work than cleaning two houses. The Latino Community Foundation works through 8 Bay Area partner organizations, including Canal Alliance, to incorporate computer training and broadband education in their community engagement programs. After first learning to navigate a computer keyboard and use a mouse, the next assignment for Alicia was to get an email address. Call it beginner’s luck, but as soon as Alicia got her email, she sent in an online application and landed a part-time job as a restaurant host. Raising two children on her own, she still needed to earn more. She dedicated her free time to continue looking, and when she found a great opportunity, she applied for it. Instead of cleaning houses, Alicia now works at a rehabilitation facility—as housekeeping supervisor. Mission Economic Development Agency: Helping Latinas Pursue Dreams When Rosa Artero signed up for computer training classes, she initially had her children in mind. “My dream is to be an example to my daughters so they can see that I am trying very hard to become a successful Latina,” Rosa said. She 38 studied hard nights and weekends to obtain two computer certifications through the Mission Economic Development Agency (MEDA). At work, her employer has begun showing her more respect for investing the time and energy to gain the training. She’s ready for more advanced classes and the family recently received a free computer through MEDA and subscribed to broadband at home. “My husband will be able to use the computer for his job; my kids can use it for homework,” Rosa said. But that’s not all. Rosa now is inspired to do something for herself: She is planning to earn a high school equivalency diploma and will study online. The ACME Network: Preparing Youth for Digital Careers “I am finally going to be paid to animate!” That’s how Henri Brownell shared the good news in an email to his supporters at The ACME Network. Henri learned digital animation skills from top Hollywood studio professionals who volunteer their time to engage youth at low-performing Los Angeles schools by providing work-related, experiential learning and one-on-one mentoring. ACME teaches more than digital arts, it “helps prepare its members socially, creatively and mentally,” said Chad Helmuth, a training executive with Sony Pictures’ Imageworks. For Henri, ACME provided key mentoring that allowed him to develop as an artist “a lot sooner” than he thought possible. Then, he served as one of ACME’s premiere student peer mentors helping other youth gain experience and confidence to pursue animation careers. “ACME helped me shape my career goals,” Henri wrote. “I’ll be working with creatures for now, but any way you cut it, it’s a great first step toward my animation career! I’m so excited!” Chicana/Latina Foundation: Helping New Immigrants Thrive Jenny Marin is a busy mom and a full-time student. Still, when she heard about the opportunity as a Chicana/Latina Foundation scholarship winner to help bring computers and broadband to underserved Latino communities, she made the extra time. She organized events and classes around the Bay Area to give 39 hands-on demonstrations to families about how computer access at home opens doors to educational and employment opportunities. Jenny alone signed up nearly 200 families, or nearly 1,000 people, for broadband, using her personal story as an immigrant to help them grasp the benefits of broadband. With the help of a computer, she was able to gain the knowledge after arriving from Peru to develop as a parent, a college student and a career woman. Going online also has helped her stay in touch with her family from Peru, giving her emotional support when she needs it most. Jenny said, “I know that without education and information no dream can be reached.” Radio Bilingüe: Bringing Families Closer Together In Iris Oseguera’s home, computer time often is family time. The Los Banos family signed up for broadband after listening to a Radio Bilingüe story about the benefits of having a computer and Internet connection right at her fingertips at home. Today, she can’t imagine her life without it. Radio Bilingüe reaches out to rural and urban Latino communities through its informational radio network. With high-speed Internet, Iris communicates with her children’s teachers about their progress in school. Her children often receive homework assignments on the computer, and they like to play online math and English games. Most importantly for Iris, Internet phone service allows her growing family to stay in touch with her mother who lives in Tijuana. “My kids and I can see and talk to my mom, even though she is far away. The Internet is now a big part of our family,” she said. San Diego Futures Foundation: Connecting Urban Residents to Jobs Saad Shamoon is passionate about his work, and it shows. After earning his computer certification at San Diego Futures Foundation, he gained employment at the foundation’s Tech Support Call Center, which provides technical support for thousands of low-income San Diego residents. He serves as a Help Desk Support Technician and Basic Computer Instructor’s Assistant, providing services in English and Arabic. San Diego Futures Foundation, in collaboration 40 with Able Disabled Advocacy, sponsors TechWORKS, a program that trains urban residents for careers in technology and operates a community-based computer help center. When it comes to job placement, graduates are encouraged to help others gain technology proficiency. “I am learning something new every day. I am learning from coworkers and customers and, as a result, I am developing myself on a daily basis,” Saad said, “When you work with something you love, you will enjoy it, and give more.” YMCA Youth Institute: Providing a Path for Promising Students A laptop in the right hands can change a life. Meet Nick Diamantides. Since middle school Nick has been part of the YMCA of Greater Long Beach Youth Institute (YI), an after-school program that engages youth with technology and provides pathways to higher education. Nick learned digital arts skills while producing films and music, even 3-D animation. And he shined as a mentor. But he never had a computer at home, until he won an Apple laptop in a YI raffle. He used it to apply to college, and was accepted as a music major at the University of California, Santa Barbara, where he holds a 3.8 GPA. “The training and laptop that I have received have changed my life,” Nick said. “My laptop is a critical tool to record, work on pitch, write papers. I am very thankful to CETF and the YMCA for understanding that training and Internet connectivity for all is a fight worth fighting.” Lessons Learned from Grantmaking California Emerging Technology Fund holds itself accountable to promote policy, advance strategies and implement actions that will result in closing the Digital Divide in California within a decade by achieving 98% deployment and 80% adoption. While many partners and organizations contribute to the efforts and are responsible for the success, CETF accepts the responsibility to sustain sufficient FOCUS, be the catalyst for the requisite ACTION, and produce the intended RESULTS. That is at the core of the mission assigned to CETF by the CPUC. 41 The progress for deployment is tracked by the CPUC and CETF. The progress for adoption is tracked through an annual statewide survey conducted by the independent Public Policy Institute of California (PPIC). Grantees are engaged as partners to drive toward these overall outcomes as well as achieve specific deliverables and outcomes set forth in Grant Agreements. Thus, grantee performance is one of the “inputs” to the overall “outcomes” for success. Grantee performance is continuously evaluated in order to make course corrections as necessary. And, results are tracked individually and cumulatively for all grantees. CETF has partnered with more than 70 grantees and has worked with government agencies, providers, and community organizations on the local, state and national level. The following summarizes Lessons Learned to date from regular evaluations of grantmaking with both CETF seed capital and the NTIA grants. CETF grantmaking focus and requirements going forward reflect these Lessons Learned. Lessons Learned by CETF in Grantmaking Focus on results identified in a clear action plan and accountability for achieving those results, based on individual grantee performance and overall success in closing the Digital Divide. Develop grantee executive leadership and staff management capacity to achieve successful outcomes that enhance potential for organizational sustainability. Promote collaboration with other complementary organizations to enhance and leverage resources and effectiveness of each partner. Leverage funds to enhance the success of a project and prospects for sustainability. Incorporate Digital Literacy training and affordable computing devices and broadband subscription offers with public awareness about broadband benefits to optimize adoption. 42 Lessons Learned by Grantee Partners in Achieving Adoptions Augment broadband availability and Digital Literacy curriculum with additional services to achieve and sustain adoptions among hard-to-reach populations. Drive sustainable adoption and broadband subscription with a full spectrum of services and additional incentives. Link commitment to job placements with Digital Literacy training and workforce preparation. Provide access to affordable computer hardware and ongoing technical assistance. Pursue sustainability by integrating Digital Literacy, broadband adoption and information technology strategies into all projects to align with priorities of specific funders. Focus and Accountability Drive Results Californians without broadband at home can be described as distinct groups based on likelihood to subscribe to broadband, ranging from “broadband hopefuls” (who are very likely to subscribe) to “digitally distant” (who will require very significant amounts of information and training before subscribing). Thus, a cost-effective approach to driving broadband adoption is first to identify and pursue “broadband hopefuls” through strategic partnerships and targeted outreach working with libraries, schools, and CBOs. Part of any program should include helping clients become smarter shoppers because one-time and ongoing costs are barriers to adoption. It’s imperative to make participants aware that they have a range of options from which to access affordable computers and broadband, and show them how to apply. The following elaborates on the Lessons Learned from the experience of grantee partners. 43 Augmenting Broadband and Digital Literacy Curriculum Consumer education is key to success. When low-income nonsubscribers are asked why they do not have broadband at home, often they cite “fear of the unknown” and “lack of time.” But they also say they have an appetite to learn about technology. It’s essential to survey participants in advance to properly understand their education and training needs. Successful programs: provide a full-range of support services at one location, including hands-on computer training and education about costs of broadband and computers; integrate the benefits of broadband into everyday activities; and show participants how going online can result in saving money, better health, improved performance in school and a path to a better job. Trusted community messengers and communitybased organizations (CBOs) are the most effective at outreach, training and helping people get access to computers and broadband if those community groups have access to appropriate curriculum and technology resources. It is important to offer information and instruction “in language and in culture” comfortable for participants and at locations where they interact with the community—schools, libraries, health facilities, churches, and other service centers. Driving Sustainable Broadband Subscriptions Broadband adoption is a “high-touch process” to move individuals from training to a completed broadband subscription. New subscribers often need one-on-one support going through the application process and help understanding the bill when it arrives in the mail. Some partners offered participants a free computer upon completion of a training program and/or subscription to broadband and found that initial and ongoing technical assistance to resolve technology problems is pivotal to optimize adoption. Additional incentives (such as a cash prize, raffle to win a computer, gift cards, or discounts on computer hardware or software), particularly targeting youth to reach extended family and friends, can further boost interest and encourage adoption. Experience also shows that 44 following up on clients to confirm continuing subscription requires planned and funded effort, but is a vital facet of driving broadband adoption. Linking Broadband Adoption to Job Placements Highlighting the benefit of broadband to seek and secure a better job can be a motivating factor. It is important is to link Digital Literacy training to job opportunities and to integrate Information and Computer Technology (ICT) skills into workforce preparation, but the training needs to go beyond computer skills. In a tough job market, it is necessary to get access to business referral networks and build relationships with employers to help ease the transition of participants into the workforce. Often it can be effective to develop additional life skills and on-the-job training through internships and volunteerism. By reinforcing the value of networking between participants and alumni coupled with training, both will gain skills that will last a career. Providing Access to Affordable Computer Hardware In regions that lack local computer refurbishers, partners should either develop relationships with organizations that ship refurbished computers statewide or purchase refurbished computers in bulk elsewhere in the state to resell to clients. Partners should negotiate a lower price and get quotes from more than one vendor. In addition, a close working relationship is needed between providers providing affordable broadband and CBOs who are trusted by the target populations. Pursuing Sustainability With limited funding available for Digital Literacy training and broadband adoption, partners should integrate these activities and programs into programs and/or partnerships that specialize in delivery of services. A growing number of services (notably healthcare, workforce development, and financial services) require clients or participants to have Internet connectivity and computer skills 45 knowledge. Partners can expand their funding opportunities by presenting Digital Literacy and broadband adoption as supportive components of projects that are more aligned with the funder’s priorities. Organizations also should seek opportunities to expand organizational capacity and design programs that will outlive initial funding source and transcend to other projects that interest funders. Don and Rosemary Vial Awards for Digital Inclusion The California Emerging Technology Fund established an awards program in honor of Don and Rosemary Vial to recognize extraordinary performance and achievements by CETF grantees and other partners to close the Digital Divide and promote Digital Inclusion in California. CETF chose Don and Rosemary Vial to honor because their lives capture the heart and soul of commitment to closing the Digital Divide and promoting Digital Inclusion. DonVial long served California as a leader in labor relations, energy policy, and telecommunications, including as President of the California Public Utilities Commission and Chairman of the California Foundation on the Environment and the Economy. He had a passion for harnessing market forces to serve the public good—deeply committed to improving the lives of all Californians with a practical approach to engaging diverse stakeholders to find common ground. He was particularly focused on the quest to use information and advanced telecommunications technology to empower the less fortunate among us and to tackle poverty. In addition to being devoted to her family and being a role model of an engaged citizen in civic affairs, Rosemary Vial always has been an outspoken advocate for those in need with a passion for fairness and equity. And, she was Don’s partner in life and public service, always there to inspire and support him. The Vial Awards are made in two categories: Exemplary Performance by an Individual ($2,500) and Outstanding Performance by an Organization ($10,000). The inaugural Vial Awards were presented in December 2010, and the second Awards in 2012. The next Vial Awards are planned for 2016. 46 2012 Awardees Recipients, Exemplary Performance by an Individual Award: Deborah Brooks, The ACME Network, and Pamela Stiles, Robert Louis Stevenson Middle School Recipient, Outstanding Performance by and Organization: The ACME Network Sidebar: Nominee representatives for Outstanding Performance by an Organization as they appear from left to right in a photograph Michael Graff-Weisner for Chrysalis; Peter Manzo for 2-1-1 California; Alicia Orozco for Chicana/Latina Foundation; Kathy Valenzuela for Latino Community Foundation; Barrie Hathaway for the STRIDE Center; Linda Garcia for Dewey Square Group; Bill Watanabe for Little Tokyo Service Center; Rebekah Reali and Anne Young for Goodwill Industries of San Francisco, San Mateo, and Marin Counties; Bruce Buckelew for Oakland Technology Exchange West; Martina Tran for Youth Radio; Deborah Brooks for The ACME Network; Steve Karp for Redwood Coast Connect; Cesar Zaldivar -Motts for Southeast Community Development Corporation; Louis Nava for San Diego Futures Foundation; and Sergio Flores for Robert Louis Stevenson Middle School. Also nominated were Social Interest Solutions & World Institute on Disability. 2012 Vial Awards Panel of Judges (not pictured) Patrick F. Mason, Ph.D., President, California Foundation for the Environment and the Economy; Paul Hernández, San Diego Civic Leader and CETF Expert Advisor; Chet P. Hewitt, President and Chief Executive Officer, Sierra Health Foundation; Maria Alicia López-Freeman, Executive Director, Emerita, California Science Project, University of California, Los Angeles; and Dr.Ali Modarres, Chair, Department of Geosciences and Environment, California State University Los Angeles. 47 Spotlight on Regional Consortia Regional Consortia to promote broadband deployment and adoption were established in the law that expanded and extended the California Advanced Services Fund (CASF) because data showed that the most cost-effective deployment projects resulted from a public process informed and facilitated by regional collaboratives that completed Regional Demand Aggregation Projects previously funded by CETF. Regional Consortia today are supported by CASF and managed by the CPUC. The following summarizes the major action items and deliverables in the Regional Consortia work plans. In general, the Regional Consortia are conducting a spectrum of community and stakeholder outreach activities, facilitating cost-effective infrastructure applications to achieve 98% deployment, and promoting activities to achieve 80% adoption. Regional Consortium Central Coast Broadband Consortium (CCBC) Monterey, San Benito and Santa Cruz Counties Action Plan Overview Conduct Public Workshops to Engage Stakeholders Central Sierra Connect Broadband Consortium (CSC) Amador, Calaveras, Tuolumne, Mariposa and Alpine Counties Connected Capital Area Broadband Consortium (CCABC) Sacramento, Sutter, Yolo and Yuba Counties Build Model Policy Bank and Distribute Information Inventory Infrastructure Assets and Facilitate CASF Applications Identify Infrastructure Projects Outreach to Disadvantaged Populations and Provide Training for Adoption Improve Economic and Education Opportunities Identify Priority Broadband Infrastructure Investments and Support Grant Applications Implement Awareness and Outreach Campaigns for Broadband Adoption Educate Policymakers about the Importance of Broadband and Removing Deployment and Adoption Barriers 48 Launch East Bay Broadband Infrastructure Initiative Establish Get Connected! East Bay Broadband Solution with Contact Center and Expos Promote Digital Inclusion in Integrated Human Services Follow Progress of Digital 395 and Equip Locations for Webinars and Classes Outreach through Community Meetings, Workshops, Forums and Fairs to Promote Deployment to Remote Areas Implement Adoption Programs for Residents and Businesses Gold Country Broadband Consortium (Gold Country) Sierra, Nevada, Placer, El Dorado and Alpine Counties Inland Empire Regional Broadband Consortium (IERB) San Bernardino and Riverside Counties Los Angeles County Regional Broadband Consortium (LACRBC) Los Angeles County Identify Clusters of Demand Match Clusters to ISPs Conduct Community Meetings with ISPs to Facilitate Applications Identify Infrastructure Projects Inventory Adoption Programs for Disadvantaged Residents Promote Government Policy and Best Practices Convene Town Hall Meetings and Distribute Information at County Fair Establish Free Community WiFi Hot Spots Conduct Computer Classes and Extend Open Lab Access Northeastern California Connect Consortium (NECCC) Siskiyou, Modoc, Shasta, Lassen, Tehama, Butte and Plumas Counties Form New Corporation to Own, Operate and Manage Fiber Network Promote General Plan Policies to Support Broadband Develop and Implement Adoption Programs East Bay Broadband Consortium (EBBC ) Alameda, Contra Costa and Solano Counties Eastern Sierra Connect Regional Broadband Consortium (ESCRBC) Inyo, Mono and Eastern Kern Counties 49 Engage Government Agencies in Each County to Inventory Connections for Anchor Institutions Promote Approval of General Plan Elements to Support Broadband Work with Tribes to Secure Federal Funding San Diego Imperial Regional Broadband Consortium (SDIRBC) San Diego and Imperial Counties Conduct Community Outreach Meetings in Remote Communities Facilitate Development of Deployment Projects Work with County Offices of Education to Survey Households and Distribute Adoption Information San Joaquin Valley Regional Broadband Consortium (SJVRBC) Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus and Tulare Counties Upstate California Connect Consortium (UCCC) Lake, Glenn, Colusa and Sonoma Counties Explore Municipally-Owned Broadband Networks Pursue Agriculture WiFi Pilot Project as Part of Strong Cities Strong Communities Program Monitor Opportunities to Use TV White Space for Distance Learning Form New Corporation to Own, Operate and Manage Fiber Network Incorporate Policies Into County General Plans Implement Adoption Programs Redwood Coast Connect (RCC) Del Norte, Humboldt, Mendocino, and Trinity Counties Mapped View of Aggregated Broadband Demand Regional Projects The printed version of this annual report includes a map image of the state of California showing the outlines of each of the state’s 58 counties. Color and symbols on this map indicate the geographic areas covered by 13 Rural Regional Consortia and grant impacts. The Rural Regional Consortia are: Redwood Coast Connect Upstate California Connect Consortium Northeastern California Connect Consortium Connected Capital Area Broadband Consortium Gold Country Broadband Consortium 50 East Bay Broadband Consortium Central Sierra Connect Central Coast Broadband Consortium San Joaquin Valley Regional Broadband Consortium Eastern Sierra Connect Regional Broadband Consortium Los Angeles County Regional Broadband Consortium Inland Empire Region Broadband Consortium San Diego Imperial Regional Broadband Consortium The geographic areas of grant impact are indicated in 44 of the 58 counties excluding: Imperial Marin Monterey Napa Sacramento San Benito San Luis Obispo Santa Barbara Santa Clara Santa Cruz Solano Sonoma Ventura Yolo 51 Spotlight on School2Home Partners School2Home Transforms Education Los Angeles Unified School District Robert Louis Stevenson Middle School, Boyle Heights Grades 6–8; 2,000 Students; 80 Teachers Partner: Partnership for Los Angeles Schools Principal: Leo Gonzalez Year 4 (Original Pilot School: Continuing) Muir Middle School, South Los Angeles Grades 6–8; 1,365 Students; 65 Teachers Partner: L.A.’s Promise Principal: Nisha Dugal Year 1 (Grade 7; 300 Students; 12 Teachers) San Fernando Institute for Applied Media (SFIAM), San Fernando Grades 6–8; 420 Students; 18 Teachers Partner: Youth Policy Institute Principal: Olivia Robledo Year 2 (Grades 6–7; 280 Students; 10 Teachers) Sidebar Quote from Jay McPhail, Director of Instructional Technology, Riverside Unified School District “School2Home is changing the way teaching is actually happening in the classroom because there’s no sense in a teacher teaching facts; when every kid has a laptop, they can look up that fact in five seconds. It becomes a more student-centered environment, and the teacher is now teaching concepts and how to weave those facts and make sure they’re valid, etc., the way teaching really should happen instead of rote learning.” Riverside Unified School District Central Middle School Grades 7–8; 680 Students; 30 Teachers Principal: Lynn McCown Year 3 (Original Pilot School; Renewed (Full-School Implementation) 52 Chemawa Middle School Grades 7–8; 1,039 Students; 43 Teachers Principal: Sean Curtin Year 1 (Full-School Implementation) Oakland Unified School District Frick Middle School Grades 6–8; 420 Students; 20 Teachers Principal: Jerome Gourdine Year 2 (Grades 6–7; 265 Students; 7 Teachers) Melrose Leadership Academy Grades 6–8; 210 Students; 10 Teachers Principal: Moyra Contreras Year 2 (Grades 6–7; 120 Students; 4 Teachers) School2Home Is Supported by Educators and Families What Students Say “I think it’s pretty cool…going on the website because you can learn your times tables better and other things. That’s why I like using a computer at school.” “During free time I get to use it and search things that we have learned that day to learn some more.” “I get to use it at home and at school and it helped me improve my typing…and it helped me go to websites I never went to before or I never knew about at my house.” “I like that we can use them at home and at school…I’m thankful for my computer.” 53 What Parents Say “Loved that the school provided a computer to families who did not have a computer and for parents that had never used a computer. I liked everything.” “The students have no excuse not to submit their homework.” “Amazing the possibilities to communicate with teachers and counselors; from the first year I took the workshop it open a whole world.” “It helped my child become computer literate. I now have a closer relationship with my child and his academic progress.” What Teachers Say “School2Home is a godsend for my students. I teach in an urban school district where we hear police sirens and gunfire all day. This program places computers in my students’ hands and opens up their limited view of the world. School2Home has expanded their mental and physical horizons.” “Students are taking the initiative to explore the Internet to find more information in class. When they see some things on the board, or within the literature they are reading, they will use the computer to find more information.” “School2Home has not only created an opportunity for parents and teachers to communicate regarding students’ academic progress, but it has personalized the dialogue helping us transform our school into a community where we all are vested in our students.” “S2H participation moved us closer to 21st century learning, students are more inquisitive.” “School2Home is a cut above the rest. It is putting our students and their parents well into the 21st Century. What this program does is give our students the tools enabling them to compete in our highly technical and advanced workplace. 54 School2Home also integrates all stakeholders, forming a vast technical networking community. I am proud to have School2Home as a learning partner, as a source of meaningful learning, and as a true leader in providing first rate technology and skills.” “School2Home has made me more aware of how to integrate technology in the classroom and for my students’ home.” “I believe School2Home helped to improve overall level of students’ school performance.” What Principals Say “We are losing students in our community, as families move away to escape the violence. School2Home has brought us hope. Student disciplinary problems decreased last year.” Jerome Gourdine, Principal, Frick Middle School “The biggest asset that the School2Home program has brought to our community is the heightened level of parent participation…that I have never seen in 20 years of public education experience.” Pablo Sanchez, Former Principal Central Middle School School2Home Promotes Academic Improvement School2Home partners are showing promising gains in academic achievement in comparison to similar schools statewide, with improved attendance, increased parent involvement, and decreased discipline problems. Stevenson gained 35 percentage points on Academic Performance Index (API) in 2011–12, out-performing LAUSD average gain of 16 points and overall state average gain of 10 points. More than 80% of parents participated in computer training. SFIAM gained 55 percentage points on API in 2011–12. 55 Frick administrators report a dramatic decrease in discipline referrals; 90% of teachers surveyed observed students more engaged in classroom work. Central posted academic improvement as an original pilot partner and now has successfully implemented a robust student technology expert program which provides basic level technical support to the entire school community. Chemawa reports that hundreds of parents now monitor their child’s academic progress online and directly contact teachers by email. Leadership is Key to Progress California Legislature Leaders Support Broadband Deployment and Adoption Quote From The Honorable Alex Padilla, 20th District Chairman, Senate Energy, Utilities and Communications Committee “We are making substantial progress in closing the Digital Divide and connecting all Californians to high-speed Internet access. We continue to lead the world as the global epicenter of technology innovation and digital entertainment, but we need to do more. Nearly 60% of Latino households in California now have broadband Internet, up from 34% just a few years ago. But that means 40% do not. All Californians, from all backgrounds and every corner of the state, deserve online access to compete and succeed in the 21st Century. A high-speed connection to the Internet is essential in education, the jobs market, health care, and access to government. The public-private partnerships fostered by the California Emerging Technology Fund have been key to California’s strategy to achieve ubiquitous broadband deployment and adoption. Let’s continue to promote policies and programs that build on the efforts of CETF, the California Advanced Services Fund, federal broadband grants, and private investment.” 56 Quote From The Honorable Jean Fuller, 18th District Vice Chairman, Senate Energy, Utilities and Communications Committee “California is a model to the rest of the country in its commitment to expand broadband access to rural communities. As Vice Chair of the Senate Energy, Utilities and Communications Committee, I will continue to pursue policies to ensure that rural California sees every benefit and opportunity enjoyed by other communities in the Information Age. As a long-time educator, I understand that our children must be adequately prepared for tomorrow’s workforce, no matter where they are from. The California Emerging Technology Fund understands that local partners made up of schools, churches, and community groups, can be the most effective at communicating the benefits of broadband and connecting people with one another. That’s how we will close the Digital Divide in California.” Quote From The Honorable Steven Bradford, 62nd District Chairman, Assembly Utilities and Commerce Committee “California is moving ahead on broadband deployment and adoption because of sustained and focused leadership, the will to make a difference and the determination not to leave any Californian behind. As Chairman of the Assembly Committee on Utilities and Commerce, I recognize that far too many Californians, both in our rural areas as well as our high tech centers, remain on the wrong side of the Digital Divide. We need to build partnerships with private providers, regional leaders and community-based organizations and urge federal communications leaders to work with us to design effective programs that leave no Californian without easy access to broadband at home and an affordable computer. Those are truly the lifelines of the Digital Age.” Quote From The Honorable Jim Patterson, 23rd District Vice Chairman, Assembly Utilities and Commerce Committee “I am pleased that the Central Valley is showing great progress on broadband deployment and adoption, closing the gap with the coastal regions and giving our families, schools and businesses the tools to grow, thrive and start hiring again. I remember taking office as Mayor of Fresno and how businesses were fleeing. Many had lost confidence in the city’s future. With focused leadership, we turned 57 it around. As a small businessman, I understand the value of staying up on technology to remain competitive, especially in our increasingly digital economy. As Vice Chairman of the Utilities and Commerce Committee, I intend to pursue policies that keep California and our region competitive; access to affordable technology and Internet connections is a key foundation to make our state an economic powerhouse once again.” Quote From Carlos Ramos Secretary of California Technology “The California Technology Agency supports State programs and departments through cost effective, innovative, reliable and secure technology. We foster and promote collaboration among the public, private and non-profit organizations to make government more efficient and effective and support the understanding of digital literacy. In doing so, we continue to bridge the Digital Divide and effectively serve the public. A number of our citizens need affordable access, training and guidance to technology and broadband connections so that they may acquire needed state services. The California Emerging Technology Fund is a valued partner and key leader in reaching underserved communities and finding new ways to integrate technology training in the delivery of education, health, employment, housing, legal and financial services. Technology training in the delivery of public services is not a luxury, it’s a necessity.” Quote From Kish Rajan Director of the Governor’s Office of Business and Economic Development “As the birthplace of so many historic digital technologies, we know in California that the nature of the worldwide economy is intimately linked to our connectivity. A greater access to connection technology translates to greater economic possibilities. Unfortunately, for too many Californians, the opposite is also true. A diminished range of digital options diminishes their chances for learning, for quality of life and for the career prospects of the future. Efforts to close our Digital Divide not only create access for our underserved but also open new channels for their financial growth. The work of the California Emerging Technology Fund 58 is to recognize that to grow the opportunities of Californians we must also grow their channels to access them.” California Public Utilities Commission PRESIDENT Michael R. Peevey COMMISSIONERS Michel Peter Florio Catherine J.K. Sandoval Mark J. Ferron Carla J. Peterman EXECUTIVE DIRECTOR Paul Clanon CHIEF ADMINISTRATIVE LAW JUDGE Karen Clopton GENERAL COUNSEL Frank Lindh California Broadband Council CHAIRMAN Michael R. Peevey President California Public Utilities Commission VICE CHAIRMAN The Honorable Alex Padilla State Senate (D–20th S.D.) State of California 59 The Honorable Steven C. Bradford Assembly (D–62nd A.D.) State of California Carlos Ramos Secretary of California Technology State of California Mark Ghilarducci Secretary of California Emergency Management State of California Tom Torlakson Superintendent of Public Instruction State of California Fred Klass Director of the Department of General Services State of California Brian P. Kelly Acting Secretary of Business, Transportation and Housing State of California Sunne Wright McPeak President and CEO California Emerging Technology Fund 60 CETF Leverages Seed Capital: Summary of Financial Status The California Emerging Technology Fund is committed to efficient and effective use of the Seed Capital which highly leverages other resources: FOCUS – ACTION – RESULTS Summary of Financial Status Through Fiscal Year 2011-2012 (Cumulative to June 30, 2012) Seed Capital Received from AT&T and Verizon: Interest and Earned Income: Contributions for Specific Programs: Government Grants (ARRA NTIA): Grants Approved To Date: (December 2012) Grant Payments To Date: (December 2012) Grant Outstanding Obligations: Leveraged Match Funding for CETF Grants: Total Expenditures – Statement of Activities: — Program Expenditures: 46,715,264 (95%) — Administrative Support Costs: 2,358,571 ( 5%) Non-Grant Expenditures – Statement of Activities: — Program Expenditures: 11,430,883 (83%) — Administrative Support Costs: 2,358,571 (17%) School2Home Expenditures To Date: (June 2012) School2Home Budgeted Expenditures: (June 2013) Total Assets – Total Liabilities and Equities: Audited Financial Statements are posted on the CETF website. $60,000,000 4,044,403 1,227,369 14,359,476 24,509,596 20,516,685 3,992,911 95,510,900 49,073,835 13,789,454 2,660,500 3,554,369 $31,835,078 The CETF Strategic Action Plan aims to close the Digital Divide by achieving 98% deployment and 80% adoption within a decade of beginning operations. The CETF Board of Directors plans to achieve success by 2017 and conclude operations, expending all Seed Capital and earnings. Thus, the Total Assets and Total Liabilities and Equities will continue to decline each Fiscal Year. The overall goal for the portfolio is to leverage the Seed Capital 4-fold by achieving a 1:3 match by other resources. To date, CETF has achieved and exceeded that goal with a 1:3.9 match. CETF also operates relatively efficiently in comparison to 61 other charitable organizations, with a cumulative 95% in Program and 5% in Support activities and expenditures according to independent audits. In addition to the original Seed Capital, the following partners have provided funding for developing and implementing School2Home: Google, AT&T, Comcast, Verizon, and IBM. Sidebar Quote from Rich Motta, CETF Treasurer “CETF is committed to high productivity and low overhead to optimize impact of the Seed Capital, which has been leveraged 4-fold through prudent management and strategic actions.” California Emerging Technology Fund Board of Directors CHAIRMAN Michael R. Peevey President California Public Utilities Commission SECRETARY Dr. Barbara O’Connor Emeritus Director, Institute for the Study of Politics and Media California State University, Sacramento Director 2010–2016, AARP TREASURER Rich Motta Retired Vice President AT&T 62 Jeff Campbell Director, Technology and Trade Policy Global Policy and Government Affairs Cisco Systems, Inc. The Honorable Martha M. Escutia Former California State Senator Partner, The Senator’s (Ret.) Firm, LLP Barb Johnston Chief Executive Officer HealthLinkNow Inc. Jim Kirkland General Counsel Trimble Navigation Limited The Honorable Lloyd Levine Former State Assemblymember President, Filament Strategies Leslie Miller Public Policy Manager Google Inc. Gordon R. “Sam” Overton President City of Los Angeles Commission on Disability Darrell Stewart Public Sector Manager Intel, Americas 63 Carol Whiteside Partner California Strategies, LLC California Emerging Technology Fund Board of Expert Advisors Rachelle Chong CHAIRMAN, CETF BOARD OF EXPERT ADVISORS Quote from Rachelle Chong “California has made significant progress in closing the Digital Divide in the last 5 years because of tremendous focus by a handful of California leaders who understand that broadband is critical to economic development and social welfare. The CETF Board of Expert Advisors has added tremendous insights, diverse expertise and critical analysis when reviewing grant and ARRA applications. Truly, we could not have achieved so much in so little time without our own brain trust of California experts drawn from academia, industry, government, consumer groups and community groups.” Neal Albritton, President and CEO, Albritton Disability Consulting Services LLC (ADCS–LLC) Michael Banner, President and CEO, Los Angeles Local Development Corporation, Inc. (Los Angeles LDC) Francois Bar, Associate Professor, Annenberg School for Communication, University of Southern California Thomas Brill, Director, Strategic Analysis, SDG&E Donna Burke, Retired, AT&T 64 Dannielle Campos, Senior Vice President and National Philanthropy Program Manager, Bank of America Charitable Foundation Raul Cardoza, Interim Vice President of Academic Affairs, Los Angeles Trade Technical College Roger Caves, Professor of City Planning, San Diego State University Karen Chapple, Faculty Director, Center for Community Innovation, University of California, Berkeley Milton Chen, Senior Fellow, The George Lucas Educational Foundation Steve Clute, Former Representative, National Electrical Contractors Association Cathy Creswell, Former Acting Director, Department of Housing and Community Development, State of California Jim Dolgonas, CEO Emeritus and Consultant, Corporation for Education Network Initiatives (CENIC) Chris Eckert, Economic Development and Growth Enterprise (EDGE), San Mateo Area Chamber of Commerce Laura Efurd, Chief Community Investment Officer, ZeroDivide Sally Jo Fifer, President and CEO, Independent Television Service (ITVS) Jim Fruchterman, President, Benetech Larry Goldberg, Director, The Carl and Ruth Shapiro Family National Center for Accessible Media (NCAM), Media Access Group at WGBH Jay Gonzalez, Linked Learning Advisor, Career Development, Los Angeles Unified School District 65 Lucy Greco, Assistive Technology Specialist, University of California, Berkeley and ACCESSACES Allen Hammond, Phil and Bobbie Sanfilippo Chair and Professor of Law, and Director of the Broadband Institute of California, Santa Clara University Dewayne Hendricks, CEO, Tetherless Access Paul Hernandez, Community Outreach Development, Fab Lab San Diego Dennis Huang, Executive Director, Asian Business Association Jarrid Keller, Chief Information Officer, California State Library Brenda Kempster, President and Founder, Kempster Group Josh Kirschenbaum, Director of Planning and Development, PolicyLink Richard Koffler, Chief Executive Officer, Koffler Ventures LLC Paul Lamb, Consultant, Man on a Mission Consulting Pat Lanthier, Principal, Rivera/Lanthier and Associates Margaret Laws, Director, Innovations for the Underserved, California HealthCare Foundation Jack Leutza, Retired, California Public Utilities Commission Maria Alicia Lopez-Freeman, Executive Director, California Science Project Dierdre Luddington, Associate, Booz Allen Hamilton Inc. Cynthia Mackey, CEO, Winning Strategies LLC Bryan Martin, President and CEO, 8x8 Incorporated 66 Rene Martinez, Vice President, Workforce Education and Economic Development, East Los Angeles College Sandi McCubbin, Senior Lobbyist, Lang, Hansen, O’Malley and Miller Walter McGuire, Director, Flex Your Power Carolyn McIntyre, President, California Cable & Telecommunications Association Milo Medin, Vice President of Access, Google Inc. Ali Modarres, Chair and Professor of Urban Geography, Department of Geosciences and Environment, California State University, Los Angeles Brian Moura, Assistant City Manager, City of San Carlos Joseph Mouzon, President, GivingSphere Geoffrey Neill, Legislative Analyst, Revenue and Taxation, California State Association of Counties KG Ouye, Partner, Ouye-Mingram Consulting Partners Manuel Pastor, Professor, American Studies and Ethnicity, University of Southern California John Ramos, President, SCV Network Stewart Ramsay, President, CTC Cable Corporation Kurt Rasmussen, Vice President, Regulatory Affairs, Verizon Phil Risken, Director, Engineering/Operations, Northern California and Northern Nevada Region, Sprint Nextel 67 Greg Rosston, Deputy Director, Stanford Institute for Economic Policy Research, Stanford University Darryl Rutherford, Development Specialist, California Rural Housing Catherine J. K. Sandoval, Commissioner, California Public Utilities Commission (CPUC) Jake Saperstein, Senior Director of Strategic Innovation Alliances, AT&T Jerry Sheehan, Chief of Staff, California Institute for Telecom and Information Technology Jenifer Simpson, Senior Director, Telecommunications and Technology Policy, American Association of People with Disabilities (AAPD) Kris Stadelman, Director, NOVA Bea Stotzer, CEO, NEWCapital, LLC Glen Warren, Vice President, Government Relations, California School Library Association Lydia Yu, Senior Analyst, Division of Health Affairs, University of California, Office of the President Quote from Rachelle Chong “Having watched CETF grow from the embryo stage to its fully-hatched status, I take great pride in the tremendous progress we have made in California to bring broadband to our residents and to ensure all Californians are digitally literate. CETF is part of the secret sauce of how California is getting the job done, because their leader and staff focus on this issue every single day.” 68 Rachelle Chong provides a unique national and statewide perspective on the progress as a distinguished policy leader in California serving in key positions: Commissioner, Federal Communications Commission and California Public Utilities Commission; Special Counsel, California Technology Agency; Vice President, Government Affairs, Comcast. California Emerging Technology Fund Staff Sunne Wright McPeak, President and CEO Susan Walters, Senior Vice President Alana O’Brien, Vice President Operations Darren Sandford, Vice President Technology Deployment Luis Arteaga, Director of Emerging Markets Agustin Urgiles, Director of Education Applications Raul Garcia, Financial and Administrative Manager Gladys Palpallatoc, Associate Vice President Raquel Cinat, Associate Vice President Jennifer Riggs, ACT Portfolio Manager Mary Anne Ostrom, Director of Communications Dino Nartea, Program Assistant SCHOOL2HOME Bonnie Marks, Program Manager 69 ACCOUNTANT Patricia Ahazie, Principal, Core Bookkeeping Solutions LEGAL COUNSEL Melinda Guzman Melinda Guzman, Professional Corporation Close the Digital Divide: Empower People and Transform Lives Statement from Sunne Wright McPeak, President and CEO, California Emerging Technology Fund There are many reasons why it is imperative for California to close the Digital Divide. Broadband is essential 21st Century infrastructure to attract capital investment, generate jobs and increase economic productivity. High-speed Internet access coupled with computing technology and digital skills greatly enhances job opportunities and makes life easier. And, broadband is a green technology, reducing impacts on the environment. Perhaps the most compelling reason to bring a depth of commitment and an intensity of focus to the challenge of closing the Digital Divide is to empower people and transform lives. The most vulnerable Californians are further disadvantaged if they do not have broadband access or do not have the requisite devices and skills to get connected. The Digital Divide is just another manifestation of the Economic Divide and Opportunity Divide. We are pleased with the progress that California has made in the last 5 years in closing the Digital Divide and appreciate that those accomplishments are being recognized with high rankings from respected independent sources. However, we are very mindful that there is a lot of work still to be done to meet the 98% deployment and 80% adoption goals—225,000 rural households in remote communities need access to broadband infrastructure and more than 880,000 households mostly in poorer neighborhoods need to get connected. Fortunately, 70 there is ample evidence about “what works” as a result of on-the-ground experience with a network of community organizations, local government officials, and regional civic leaders. However, although CETF operates very efficiently and has effectively leveraged the original seed capital with a track record of grantee partners meeting and exceeding performance outcomes, accomplishing the goals for closing the Digital Divide will require new public policy and additional resources. In California it will be pivotal for the Legislature and Governor to amend and extend the California Advanced Services Fund and to implement recommendations from the California Broadband Council for integrating broadband into major statewide initiatives. But, the biggest potential for gamechanging action is in the hands of the Federal Communications Commission in implementation of the National Broadband Plan through redesign of the Universal Services Fund (especially the Connect America Fund and Broadband Adoption Lifeline Program) and oversight of other programs such as Connect2Compete. The federal government must work in partnership with states to close the Digital Divide. The California Emerging Technology Fund stands willing and ready to be a partner in the quest to empower people and transform lives. CETF Contact Information The Hearst Building 5 Third Street, Suite 320 San Francisco, CA 94103-3206 415-744-CETF (2383) 415-744-2399 Fax 1000 North Alameda, Suite 240 Los Angeles, CA 90012-4297 213-443-9952 213-613-0362 Fax www.cetfund.org 71